HTC distances itself from Samsung, reduces part orders

The folks over at HTC aren't really having the time of their lives right now. The company has been having financial difficulties, with last quarter not showing any signs of revival... Which is really sad, because HTC has been one of the biggest success stories in recent memory. Starting its business as a hardware vendor for other companies, it has grown to become one of the leading smartphone manufacturers. Sadly, the momentum seems to have worn off, and now Samsung, using its enormous scale, has taken over the market with dozens, if not hundreds of devices, covering each and every handset category.

So what remains for little HTC but to stop feeding its competitor then. This may be the reason why HTC has decided to distance itself from its competitor by starting to purchase smartphone parts from other companies. For example, HTC will no longer partner with Samsung for the supply of its CMOS camera sensors. Instead, it will be buying them from OmniVision and Sony. In addition, a part of the AMOLED screen supply will now be taken by AU Optronics. However, since HTC is said to be worried that AU Optronics may not be able to deliver enough AMOLED production, part of the supply will still be produced by Samsung.

We can understand HTC for wanting to distance itself from Samsung. After all, who'd want its business to be dependent on one of its biggest competitors?

I love HTC but i think the news is exaggerated. Sourcing material from multiple vendors is just simple vendor management...never put all your eggs in one basket.
However if there is truth in this then HTC isnt making the right move...be it smart or not. You dont gain market share by cutting off from your competitior...that just negative play...you gain market share by delivering better than your competitor even if you buy parts from them.
And oh yeah HTC really needs a good branding guy/gal and an awesome marketing guy/gal!

It can be explained by the fact that Apple does a darn good job on their own without customer feedback. I never said it was a bad thing. Did you not see Sunday night's episode of Family Guy? Pandering to the masses isn't always a good thing.

Listen, gallitoking, I've always respected you more than most iPhone fanboys because you seem to be fairly sensible, but don't push my patience.

What part of "Apple's tactic of not relying on consumer feedback is a GOOD thing" do you not understand?!? I'm AGREEING WITH YOU THAT APPLE MAKES A DARN GOOD PRODUCT AND MOST CONSUMERS ARE EXTREMELY SATISFIED WITH IT. What part of this can't you get through your thick, crappy-Seth Green-humor riddled skull?!? This isn't some stupid Phandroid comment that "oh, Apple doesn't listen to customers, so obviously it SUCKS! Da-derp-de-der!" I couldn't care two f**ks about Apple v. Android at this point. I'm saying that it's a well documented FACT that Apple notoriously relies much less on customer feedback than most other companies.

Apple don't ask for feed backs from their customers. They steal them from their users. Didn't you now know why IPhone is a data hog and why? They gather information from your IPhone. Everything you do and where ever you are, Apple is on it. But is not about Apple.

HTC is making a bad move from removing Samsung. Samsung makes most of the parts for electronics device out there in the world. You can't blame the competitors for you lose of sales. HTC had it when it came out with the original EVO. Because at the time it was the most advance phone and lead of its own. It failed when it came out with the 3D. Really, who wants a 3D on a phone? Than the EVO LTE or One X with battery and SIM just like the IPhone. They the best engineering company that design and build their own phones (Motorola, HTC, and Samsung). They just need to come up with something that is unique about their device. So called special ear piece and music IS NOT UNIQUE!!! Stop following Apple and come out with something original!!! Like Samsung with Direct file share, swap screen shots, and etc, or Motorola with boarderless screen. Stop following and be a leader like you did with the EVO

2.MeoCao (unregistered)

I think deliberately reducing orders from SS will do more harm than good to HTC. SS is too big so the loss of HTC orders will not do much damage to SS while the increase price or inferior products from other suppliers may cost HTC much more.

I think HTC stops buying camera sensors mainly b-c HTC tries to gain some features that Sony camera offers. It's well know that Sony is the best in the business.

8.ZEUS.the.thunder.god (unregistered)

well what can we say.. Sammy does not need htc.. they can consume everything inhouse and there are many companies out there who relies on Sammy for verious things. but I also think the news is really exaggerated. there can be plenty of reasons for htc to reduce their ties with sammy. anyway good luck htc. and yeah Sammy rocks.

dont worry about that htc is making the right move htc will start building itself slowly the one x is a great phone the one x plus will make them better and i believe they should keep the super lcd2 they are the best right now if they get a better camera like iphone and use removeable battery at least they will be better off

maybe if they would listen to their customers and put large removable batteries instead of undersized non-removable batteries in their phones as well as have them heavy things lose some weight, they would see a rise in sales.

IMO...the EVO 4G LTE is what the One X should've been - sans original color/material scheme. It's a fantastic phone, but I wouldn't have bought it if it didn't have the micro SD slot. Also, I think they (HTC) were/are a little late to the Phablet party.

htc is following what apple is doing, tryng not to rely too much on samsung for its spare parts. it makes good business sense coz buying from your competitor will only give them a heads up on what you are doing or give them an idea on which of your product is doing well.

I own an HTC phone now (EVO Shift) and I'm making the jump to the Galaxy Note II when it drops and i have no problems with HTC and if anything if HTC isn't doing so well and there are no signs of recovery maybe there should be a merger/ acquisition on Samsung's behalf cause the two on their own make pretty decent products a combo on their tech and hardware would be something to see in my opinion.

HTC will continue to go down, for one reason. Samsung is trying to take down Apple and will take all other Androids manufacturers in the process.. Samsung wants to be the only manufacturer of Android at least the one that matters...

wrong, apple fired the first bullet its apple's intention to stop the competition not compete. i love how you go on that samsung are this anti competitive company yet you blindly support apple to an extent that shows you as a mindless sad little ifan.

sansumg arent the reason HTC are going down, one main reason is people like you who dont know about tech and buy for the brand and the bragging rights you believe it gives you.

as for this

''Samsung wants to be the only manufacturer of Android at least the one that matters...''

Samsung does not want to dominate the market. It will be bad business for them since they supply a lot of the parts for electronic devices. Samsung would had no issue with Apple until Apple started poking them. HTC has the same atitude as Apple. Samsung is like Texas Instruments, this is nearly nothing in this world a electronic that does not have a Samsung part in it. They only interested in buying advance chips if you are welling to sale your engineering ideas.

Well, you're right about one thing.... HTC will continue to go down. However, that's not Samsung's fault, HTC makes poor business decisions. HTC will continue to go down as long as they can't make good decisions. The marketing for the One series this time is great, but they limited their sales by having One X selling on AT&T. How do they expect to ever come back with just One X on AT&T and One S on T-Mo? They're just pushing the sales to go to GS3.

All manufacturers are trying to take each other down, that's competition and greed of business people. Why settle for second place when you could beat all others to be first? No business is in the business to be in second place.

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